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Harvard University Economics Professor Martin Feldstein weighs in on cyber threats.
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Our part we're gonna get back to this story here in the report -- breaking news this morning out day out cyber threat possibly as credible one at the New York Stock Exchange Nicole mentioned the exchange not commenting on the threats for the security related issues taken seriously obviously.
And we Martin Feldstein here Harvard economics at professor just writing -- studio with us about cyber attacks of the possibility of them in the Wall Street Journal so.
What do you make in this in this report and then at what we should do about these things in general.
Well it is a real danger mean there are bad actors out there both governments and private actors.
Who could shut down.
Critical infrastructure whether it's the financial sector or transportation.
Or air traffic controllers or.
Electricity.
And we're not geared up to deal -- it.
And the annoying thing is to me at least thinking about this problem is that we have the technical capability to stop a lot of these attacks but there are legal barriers that have to be overcome.
Yeah how do we overcome as a nation the legal barriers in terms of protecting people's rights people's privacy but still protecting the country ago.
Well I can understand why people are worried about having.
National Security Agency which is part of the Defense Department.
Dealing with the emails coming from the rest of the world but they don't have to read the emails they just looked to see whether they're coming from.
IP addresses that they know or bad guys -- they have other indicators that -- malware there.
And if that's true then they could turn it over to a domestic organization like the Department of Homeland Security.
Which could deal with recipient of that email.
Make sure that it doesn't do any damage.
In the case of -- private corporations and we don't know exactly what or anything happened related to the New York Stock Exchange today this report is just cannot last half an hour or so.
But broadly speaking -- doubt -- the honesty on the corporations to spend.
And really ramp up what they're doing themselves or should the government be more involved wells.
I think you got to distinguish between companies that are.
Really critical infrastructure of the stock market went down a -- major banks went down the air traffic controllers went down.
That would be a major problem for the country so I think for those new order be regulations.
Requiring them.
To work with the agencies to stop these kinds of cyber attacks from coming through.
But I think the cost of doing that ought to be born.
Collectively it's a public good it is the same thing is national defense we shouldn't ask individual companies to be bearing that.
To shift gears from the risk of a cyber attack to the risk of inflation how much.
Inflation.
Do you think is in the pipeline how big of a danger it is because of -- incredibly loose monetary policy has been in place for years and well.
You know the Fed says that they have.
Exit strategies that they could unwind these positions -- two trillion dollars in positions.
Technically they could the real question will be.
When the time comes when they have to do that.
Will only be under such pressure from the congress.
Threats in fact press saying that if you start raising interest rates now before the economy is fully -- -- We can't.
Protect you from legislation that will.
Take away some of the new authority of the Fed.
That came pretty close to happening during the Dodd-Frank.
Legislation.
So the Fed has to be nervous about that so that's what makes me concerned about the risks of inflation pressure from the congress.
Could make it hard for the Fed to do what technically they could do.
All right dead and just before we let you go on thanks for coming and doing this is studio today just tell us where you think we are 'cause that's the debate the Federal Reserve is happening in this economic recovery things getting better where -- -- I think it is weaker than the numbers that the Fed has been talking about.
When I look at what's happening.
I see a lot of indicators that things are not very good -- the role reeling comes have been falling wages have been folding in real terms.
Consumer confidence is down.
Housing sales are down.
There was a number out today about a potential housing sales would if you look at the actual housing sales -- new homes and existing homes there down.
So -- worry that this economy may be substantially weaker.
Then.
Then the forecasters.
On the -- staff.
It was privacy and covered a lot well good to be with you never enough time see you must come back will build -- -- -- thank you so much you well.
